Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
    1. Final accounts - short answer questions
    2. Capital and revenue expenditure - short answer questions
    3. Profit and loss accounts - short answer questions
    4. The profit and loss account - numerical questions
    5. Balance sheets - short answer questions
    6. The balance sheet - report
    7. The balance sheet - numerical questions
    8. Depreciation - short answer questions
    9. Depreciation - numerical questions
    10. Company accounts - interactive questions
    11. Company accounts - rebuild a set of accounts
    12. Uses and limitations of published accounts - memorandum
    13. Stock valuation - numerical questions
    14. GM - are they losing it?
    15. Between a Rok and a hard place.
    16. Toyota out of reverse gear
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

Depreciation - short answer questions

Question 1

Explain the process of straight-line depreciation.

Question 2

Explain the term 'revaluation reserve'.

Question 3

Explain why firms include depreciation in their accounts.

Question 4

A company purchases a new refrigerated articulated delivery vehicle for $120,000. It is to be depreciated over 4 years, when it will have a residual value (resale value) of $20,000. What will be the written down book value of the vehicle after two years of use?